Early Retirement Age – How Should You Make Your Decision?

A person holding a baby

If you feel like getting retired but you think it’s not the right time, it is important for you to be aware of the early retirement age and criteria. They say that the earlier you plan your retirement, the better it will be for your financial future. The higher early retirement age would also decrease the amount of time that individuals receive benefits from a pension plan, as an attempt to reduce plan expenses.

In fact, beginning in 1935 when Social Security was enacted, benefits started at a maximum benefit of sixty-five years for retired persons, although benefits gradually increased to a maximum of seventy-five years when social security was made compulsory. Starting in 1960, however, retired persons could claim early retirement benefits even if they had not yet claimed them as of the date of their eligibility, although benefit rates were subsequently reduced.

The first benefit rate that applied was fifty per cent for each year from twenty-one to forty-one, and fifty per cent thereafter. The second benefit rate was fifty per cent for the years from twenty-one to thirty-four, fifty per cent for the years from twenty-four to thirty-five, and fifty per cent thereafter. Finally, the third and last benefit rate was fifty per cent for the years between twenty-one and thirty-five, fifty per cent for the years between twenty-one and thirty-six, and fifty per cent thereafter.

Know Everything About Early Retirement Age
Know Everything About Early Retirement Age

Early Retirement Age – Did You Know About These Benefits?

In addition to the regular benefits that are paid for the duration of your life, retirement benefits for those who have attained the maximum early retirement age could include some amount of medical care, free tuition, free housing, free use of carpooling, free use of public transportation, and free use of recreational vehicles. In addition, your lifetime annuities could pay off part or your entire total mortgage or rent in the event that you should become unable to work long enough for you to collect your regular pension.

Those who are approaching early retirement age usually anticipate retiring at fifty to sixty years of age, although this can be a very premature retirement age. This is particularly true for individuals who are still living with parents or family members who are no longer working since these individuals usually do not earn as much money as those who have retired at a later age.

Most retirees begin planning for early retirement at the age of forty-one. By this point in their lives, they can make their plans for retirement more definite and understand what kind of income they wish to obtain by the time they reach the required retirement age of sixty-five. In order to determine what kind of income you can generate, there are several ways that you can consider, such as working in a retirement community for part of your life or pursuing a career that offers you a good salary while you are still employed.

Useful Info About Early Retirement Age
Useful Info About Early Retirement Age

What Else Should You Be Aware Of?

If you are working, a retirement community is probably your best choice. Retirees from these communities typically live together and enjoy a more comfortable life. These communities are self-sustaining and allow retired persons to build a network of friends, especially in the areas that they work in. Retirement communities also provide assistance with food, housing, shopping, and other essentials.

While retirement communities can be a great way to start thinking about how to retire early, they may not be the right way for everyone. If your goal is to save enough money for a comfortable lifestyle by working until you are sixty-five, then a job is probably not the best choice. The key is to choose a career based on what you enjoy and what you are able to earn, which is not necessarily tied to working.

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